- THE Alliance announced Tuesday its proposed service network would include more than 240 ships operating 31 East-West trade services with coverage including 75 major ports.
- If approved, the shipping alliance — comprised of Hapag-Lloyd, the newly merged Japanese lines, and Yang Ming — would be the third and smallest shipping alliance to emerge over the past three years.
- The services are set to commence mid-April, with 22 of the 31 services arriving at up to 20 ports in the U.S. and Canada.
THE Alliance has yet to be approved by a regulator, but its service announcement shows its strategy is to maintain a global presence rather than specialize on dominating a specific segment of the market.
However, compared to 2M and the Ocean Alliance, THE Alliance may face institutional headwinds. For example, although the shipping lines have made it clear they plan to use both the Suez and the Panama Canal throughout their trade lanes, a recent report suggests the Suez did not offer any member of the alliance a frequent-user credit incentive that may be enjoyed by Maersk and CMA CGM.
However, if Hanjin proved anything it was that good management, not size or renown is what matters most when faced with financial pressures.